Traditional "Guru" training teaches that second mortgage holders will be happy with a pay-off 10% of loan amount.

guess our plumbers are still safe.....Yeah, that's a much older tradition.

The real question is, what alternatives do we have, other than the traditional methods, when buying a home?

Where they can be found is NO secret and the bank will take the strongest offer.There are thousands of REO properties to be found, that are under perceived "market value," however in CA "market value" is very subjective.Most REO transactions take longer to close than a traditional transactions and there are obstacles to overcome, even in the best case scenario.I have represented many clients, in which an REO property LOST value during the transaction period.Where I do see an investing opportunity is as follows:Best case, look for a short sale in which the inventory is stale and the bank wants the property off the books.

Passed as many closing costs onto the buyers I understand this is not your traditional method, but they appear to moving property very quickly.

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I have worked with several custodians/third party administrators for self directed accounts so I do have something to compare to.I don't see a need to have two at once and pay fees twice, I also don't feel it is necessary to start off with a traditional account and then go to check book control, anything you need to know or learn can be done on the IRS website or with any number of other online resources regarding the rules and regulations including disqualified parties and prohibited transactions.

I hope to use BP for receiving feedback on some non-traditional financing strategy's I've been researching.- Charles

If you don't have cash to pay for your deals or income to qualify for a traditional mortgage, you just have to find a different way to finance the deal.

And most banks require that this amount be equal to or greater than the amount that they are willing to finance.But then again when the buyer brings cash from whatever source he has there is no requirement for that insurance and you are right back to the CMV instead of financiable value or insurable value.The Currment Market Value for any particular home in the end is determined by only the buyer and seller and is based upon the home itself with all its unique draws to each of them regardless of what home values in the area have been traditionally going for.